Question 1

​Under the non-strategic view of bargaining,the terms of agreement are determined by

Accepted Answer

A) ​Each parties outside options 
B) Your gain from agreement 
C) Your opponents gain from agreement 
D) ​All of the above 
A) ​Each parties outside options 
B) Your gain from agreement 
C) Your opponents gain from agreement 
D) ​All of the above

Question 2

​If a union threatens to strike during a peak demand period,it is more likely to

Accepted Answer

A) ​Have its conditions accepted 
B) Have its conditions rejected 
C) Get laughed at 
D) ​All of the above 
A) ​Have its conditions accepted 
B) Have its conditions rejected 
C) Get laughed at 
D) ​All of the above

Question 3

​Burn the Boats
When Hernán Cortés was leading his men in conquest of the Aztecs in Mexico,he famously burned his boats on the beach before setting off inland.How does this help him to bargain with his sometimes unwilling men?

Accepted Answer

Burning the boats is a commitment device

Question 4

​Use the following setup for question
Consider a non-strategic game between a firm and its union.The value to the firm of getting the workers back to work is $5 million.The union's agreement value to get back to work is $5 million.The firm can hire nonunion workers,"scabs",so their disagreement value is 1 million and the union members can find temporary employment elsewhere,making the unions disagreement value $2million.
-When buying a car from a dealer,to get a better bargaining position

Accepted Answer

A) ​Always carry your check book to show willingness to buy 
B) Carry only blank checks to ease the transaction 
C) Carry a cashier check that cannot be modified 
D) ​All of the above 
A) ​Always carry your check book to show willingness to buy 
B) Carry only blank checks to ease the transaction 
C) Carry a cashier check that cannot be modified 
D) ​All of the above

Question 5

​The reason we study the non-strategic sequential labor negotiation game:

Accepted Answer

A) ​Is to show that these games usually go on for many rounds 
B) Is to show the importance of the first mover being able to commit to an offer 
C) Is to show the importance of the second mover being able to commit to an offer 
D) ​Is to show the irrelevance of mover position,given that he is able to commit to a position 
A) ​Is to show that these games usually go on for many rounds 
B) Is to show the importance of the first mover being able to commit to an offer 
C) Is to show the importance of the second mover being able to commit to an offer 
D) ​Is to show the irrelevance of mover position,given that he is able to commit to a position

Question 6

Restricted Formulary
Hospitals are big purchasers of pharmaceutical products and have to stock many different chemical entities.However,they increasingly do not stock all.Instead,they restrict their formularies to many of the treatments in a therapeutic class but consciously exclude a few.How does this help them negotiate?

Accepted Answer

If they were to carry every drug in exis

Question 7

​When buying a car from a commission salesman you improve your bargaining position by

Accepted Answer

A) ​shopping when the new model year cars have just arrived 
B) shopping when the showroom is empty of customers 
C) shopping when the car lot has only few cars left unsold 
D) ​shopping toward the beginning of the month 
A) ​shopping when the new model year cars have just arrived 
B) shopping when the showroom is empty of customers 
C) shopping when the car lot has only few cars left unsold 
D) ​shopping toward the beginning of the month

Question 8

​In the strategic view of bargaining:

Accepted Answer

A) ​Bargaining is described by standard game theory rules 
B) The game is played without specific strategies 
C) The game always results in a fifty-fifty split 
D) ​The game is played just for the fun of it 
A) ​Bargaining is described by standard game theory rules 
B) The game is played without specific strategies 
C) The game always results in a fifty-fifty split 
D) ​The game is played just for the fun of it

Question 9

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
-​Would the shopkeeper be able to convince the customer that he would usher the customer out if he gets a low price?

Accepted Answer

A) ​Yes,such threats are always credible 
B) No,because losing the sale is not in the shopkeeper's best interest 
C) No,because he would get more by accommodating the low price than losing the sale 
D) ​Both B&C 
A) ​Yes,such threats are always credible 
B) No,because losing the sale is not in the shopkeeper's best interest 
C) No,because he would get more by accommodating the low price than losing the sale 
D) ​Both B&C

Question 10

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
-​If the shopkeeper goes first and quotes a low price,what is the best response of the customer?

Accepted Answer

A) ​Accept the low price happily 
B) Walk away from the deal 
C) Slam the storeowner's door on the way out 
D) ​Laugh at the storeowner 
A) ​Accept the low price happily 
B) Walk away from the deal 
C) Slam the storeowner's door on the way out 
D) ​Laugh at the storeowner

Question 11

​Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,her raise request is more likely to be

Accepted Answer

A) ​Accepted 
B) Rejected 
C) Laughed at 
D) ​All of the above 
A) ​Accepted 
B) Rejected 
C) Laughed at 
D) ​All of the above

Question 12

​When buying a car from a commission salesman you improve your bargaining position by

Accepted Answer

A) ​shopping when the new model year cars have just arrived 
B) shopping when the showroom is full of customers 
C) shopping when the car lot has very few cars left unsold 
D) ​shopping toward the end of the month 
A) ​shopping when the new model year cars have just arrived 
B) shopping when the showroom is full of customers 
C) shopping when the car lot has very few cars left unsold 
D) ​shopping toward the end of the month

Question 13

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
-​Looking ahead at how the customer is more likely to react,what price should the shopkeeper charge?

Accepted Answer

A) ​High price 
B) Low price 
C) Offer the good for free 
D) ​A compromised price between the high and the low price 
A) ​High price 
B) Low price 
C) Offer the good for free 
D) ​A compromised price between the high and the low price

Question 14

​Under the non-strategic view of bargaining,the terms of agreement are determined by

Accepted Answer

A) ​Your opponent's eagerness to reach agreement 
B) Your outside options 
C) Your opponents gain from agreement 
D) ​All of the above 
A) ​Your opponent's eagerness to reach agreement 
B) Your outside options 
C) Your opponents gain from agreement 
D) ​All of the above

Question 15

​When buying a car from a dealership,to get the best bargain

Accepted Answer

A) ​Never stick to the first offer you make 
B) Allow room for bargaining 
C) Threaten to walk out if the dealer does not accept your offer 
D) ​Quote your highest willingness to pay 
A) ​Never stick to the first offer you make 
B) Allow room for bargaining 
C) Threaten to walk out if the dealer does not accept your offer 
D) ​Quote your highest willingness to pay

Question 16

​If a union threatens to strike during a slow demand period,it is more likely to

Accepted Answer

A) ​Have its conditions accepted 
B) Have its conditions rejected 
C) Get laughed at 
D) ​All of the above 
A) ​Have its conditions accepted 
B) Have its conditions rejected 
C) Get laughed at 
D) ​All of the above

Question 17

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50)or low price ($20)and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
-​Suppose the shopkeeper is known to usher low bidders out of the store even if it means giving up the sale.If the customer moves first,he would

Accepted Answer

A) ​Offer the high price 
B) Offer the low price 
C) Get ushered out of the store 
D) ​All of the above 
A) ​Offer the high price 
B) Offer the low price 
C) Get ushered out of the store 
D) ​All of the above

Question 18

​Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,she would

Accepted Answer

A) ​Have a weaker bargaining position 
B) Have a stronger bargaining position 
C) Be laughed at 
D) ​All of the above 
A) ​Have a weaker bargaining position 
B) Have a stronger bargaining position 
C) Be laughed at 
D) ​All of the above

Question 19

​The disagreement value in a nonstrategic game is most closely associated with

Accepted Answer

A) ​opportunity costs 
B) fixed costs 
C) variable costs 
D) ​accounting costs 
A) ​opportunity costs 
B) fixed costs 
C) variable costs 
D) ​accounting costs

Question 20

​When buying a car from a commission salesman you improve your bargaining position by

Accepted Answer

A) ​shopping for last year's model when the new model year cars are arriving 
B) shopping when the showroom is full of customers 
C) shopping when the car lot has few cars left unsold 
D) ​shopping toward the beginning of the month 
A) ​shopping for last year's model when the new model year cars are arriving 
B) shopping when the showroom is full of customers 
C) shopping when the car lot has few cars left unsold 
D) ​shopping toward the beginning of the month

Under the non-strategic view of bargaining,the terms of agreement are determined by

If a union threatens to strike during a peak demand period,it is more likely to

Burn the Boats When Hernán Cortés was leading his men in conquest of the Aztecs in Mexico,he famously burned his boats on the beach before setting off inland.How does this help him to bargain with his sometimes unwilling men?

The reason we study the non-strategic sequential labor negotiation game:

When buying a car from a commission salesman you improve your bargaining position by

In the strategic view of bargaining:

Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,her raise request is more likely to be

When buying a car from a commission salesman you improve your bargaining position by

Under the non-strategic view of bargaining,the terms of agreement are determined by

When buying a car from a dealership,to get the best bargain

If a union threatens to strike during a slow demand period,it is more likely to

Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,she would

The disagreement value in a nonstrategic game is most closely associated with

When buying a car from a commission salesman you improve your bargaining position by

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Exam 14: Bargaining

​Under the non-strategic view of bargaining,the terms of agreement are determined by

​If a union threatens to strike during a peak demand period,it is more likely to

​Burn the Boats When Hernán Cortés was leading his men in conquest of the Aztecs in Mexico,he famously burned his boats on the beach before setting off inland.How does this help him to bargain with his sometimes unwilling men?

​The reason we study the non-strategic sequential labor negotiation game:

​When buying a car from a commission salesman you improve your bargaining position by

​In the strategic view of bargaining:

​Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,her raise request is more likely to be

​When buying a car from a commission salesman you improve your bargaining position by

​Under the non-strategic view of bargaining,the terms of agreement are determined by

​When buying a car from a dealership,to get the best bargain

​If a union threatens to strike during a slow demand period,it is more likely to

​Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,she would

​The disagreement value in a nonstrategic game is most closely associated with

​When buying a car from a commission salesman you improve your bargaining position by

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Under the non-strategic view of bargaining,the terms of agreement are determined by

If a union threatens to strike during a peak demand period,it is more likely to

Burn the Boats When Hernán Cortés was leading his men in conquest of the Aztecs in Mexico,he famously burned his boats on the beach before setting off inland.How does this help him to bargain with his sometimes unwilling men?

The reason we study the non-strategic sequential labor negotiation game:

When buying a car from a commission salesman you improve your bargaining position by

In the strategic view of bargaining:

Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,her raise request is more likely to be

When buying a car from a commission salesman you improve your bargaining position by

Under the non-strategic view of bargaining,the terms of agreement are determined by

When buying a car from a dealership,to get the best bargain

If a union threatens to strike during a slow demand period,it is more likely to

Jill,a bookkeeper,just received an attractive offer from an outside firm and so she asks for a raise from her current employer.If the management of Jill's company is aware of the offer,she would

The disagreement value in a nonstrategic game is most closely associated with

When buying a car from a commission salesman you improve your bargaining position by